12/22/2021 Watchlist Chart
Watchlist for 12/22/2021
$UPST – The stock traded up 13.67% during market hours but was down 0.19% after hours. On the daily timeframe, UPST closed a strong bullish candle off the reversal from the 130-level support. UPST was showing relative strength while the market dipped at open and managed to close near high of day. Once it can close above the 9DMA, it’s a better confirmation of a reversal for UPST. Keep an eye on the 150 level, if UPST can break above with volume, it can test 156 to 162 (14DMA) level resistance. Above 162, it can test 169 to 173 (20DMA) level resistance. Consider puts if UPST fails to hold above 147, as it can pull back down to 144 to 139 supports.
Contract Suggestion:
Above 150: 155C 12/23 (1.1K Volume @ 2.60) or 160C 12/31 (1.3K Volume @5.00)
Below 147: 145P 12/23 (736 Volume @2.55)
$SE – The stock traded up 10.82% during market hours but was flat after hours. Just like UPST, the daily chart looks very similar for SE. It bounced off the 200-203 level support and closed a strong bullish candle. SE has the better setup as it managed to close above the 9DMA (227.49) with above-average volume. If the market does decide to bounce, SE is setting up for a larger bounce towards the upside. Keep an eye on the 230 level, if SE can break above with volume, it can test 234 to 238 (14DMA) level resistance. Above 238, it can test 240 to 247 level resistance. We will consider puts if SE fails to hold above 227 level (9DMA) as it can pullback down to 221 to 214 level support.
Contract Suggestion:
Above 230 or B/T 227: 232.5C 12/23 (1.16 Volume @2.84) or 250C 12/31 (516 Volume @1.84)
Below 227: 220P 12/23 (208 Volume @1.70) – Wide Spread
$AFRM – The stock traded up 6.43% during market hours but was down 0.59% after hours. The fintech sector showed relative strength today and AFRM managed to close a strong bullish candle on the daily timeframe. On the daily timeframe, AFRM tested and held 97 multiple times and it is set up to test that 9DMA (106.14). Once AFRM can managed to close above the 9DMA, it can set up for a better confirmation of a reversal towards the upside. Overall, AFRM is in a downtrend till it can clear the 110 level for a larger move higher. Keep an eye on the 106 or 104 (HOD on Tuesday), as it can test 110 to 115 level resistance. Above 115 level, it can test 118 to 127 level resistance. We will consider puts if AFRM fails to hold above the 101 level, as it can pull back down to 97 (Strong daily support) to 90 (200DMA) level support.
Contract Suggestion:
Above 106 or 104: 107C 12/23 (316 Volume @1.30) or 110C 12/31 (1.1K Volume @2.95)
Below 101: 100P 12/23 (282 Volume @1.20) or 98P 12/23 (576 Volume @0.80) – LOTTO
$SHOP – The stock traded up 6.86% during market hours but was down 0.52% after hours. On the daily timeframe, SHOP is currently trading within a falling wedge set up and was stopped by the 200DMA (1375.48) during Tuesday trading sessions. It managed to close a very strong bullish candle and the breakout above 1400 would be massive (14DMA). SHOP options usually have wide spreads and move wildly, so try to limit orders if you are going to pay. Keep an eye on the 1378 level (near the 200DMA), as it can test 1378 to 1400 level resistance. Above 1400, it can test 1429 to 1451 (20DMA). Above 1451, it can test 1469 to 1486 (50DMA). SHOP can move 70-100pts in a day, like AMZN. We will consider puts if SHOP fails to hold above the 1354 level, as it can pullback down to 1340 to 1322 level support. Below 1322 can drop down to 1300 to 1271.
Contract Suggestion:
Above 1378: 1400C 12/23 (4.3K Volume @10.50) or 1450C 12/23 (1K Volume @2.45) – Both Wide Spread
Below 1354: 1300P 12/23 (655 Volume @3.60)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment Data Claims on Thursday (12/23) at 5:30am PST/8:30am EST
- Core Inflation Data on November 2021 on Thursday (12/23) at 5:30am EST/8:30am EST
- Market is closed on Friday (12/24) in observance of the Christmas Holiday.